The world of the Internet is changing rapidly. Users have become increasingly comfortable with making a significant percentage of their purchases online. Everything from automobiles to groceries can now be easily purchased over the Internet, and users have responded to this broad availability by making more frequent online purchases. According to Netpop Research, consumers cite convenience, efficiency, time Management, better prices, broader selection, price comparisons and the ability to avoid crowds as primary motivations for shopping online. Consumers are able to use websites such as Shopzilla, Shopping.com and NexTag to compare product prices and ensure they find the best possible deal.
As part of this growing consumer confidence, spending on digital retail will see tremendous growth in the coming years. It is estimated that in 2007 consumer digital spending will total $300 million. In 2008, the number will double to $600 million. Research firm Screen Digest recently forecast that by 2011, digital downloads will generate $1.3 billion in annual revenue. As this kind of spending gains mainstream acceptance, consumers will increasingly purchase digital files of music, books, photos and movies. While digital movie downloads generated a trifling $20 million in 2006, eMarketer conservatively estimates that movie downloads will reach $846 million by 2011. Parks Associates projects revenue to be in the range of $1.8 billion.
In addition and over the past years, there has been a remarkable transformation in the kind of content available online. Video in both short form and long form is now readily available through multiple portals and platforms. Innovation and technological advances have provided Internet users with the proper connection speeds and power to make online video a reality, and have enabled users to share and distribute content within their own specific social networks in a manner they find unique and compelling.